China Sky One Medical (NSDQ: CSKI) reported its AMI Diagnostic Kit for early detection of heart disease was designated a National Innovation Project. The award carries with it a 6 million RMB ($.9 million) stipend for 2010. The National Development and Reform Commission (NDRC) bestows the award to companies involved in high-tech industries that have developed innovative projects.
To qualify, projects must represent novel global technology and promising market potential, for which the company owns all the intellectual property rights.
The National Innovation Project designation also confers a beneficial 15% tax rate on the company, though China Sky One already enjoys that preferential tax rate, mooting this particular benefit.
Approved in 2007, the AMI Diagnostic Kit is used for early diagnosis of Myocardial Infarction (MI), or heart disease. The product is sold OTC in drug stores. Customers are encouraged to buy the test if they are worried about the health of their heart. The kit requires the placement of a blood sample on a marker, causing either a positive or negative sign, showing whether users should consult their doctor for further testing.
For the first nine months of 2009, the AMI Diagnostic Kit accounted for $7.5 million of revenue, about 7.5% of the company’s total revenues
China Sky One makes and markets a wide variety of products for China. The majority are delivered topically, and many of them of TCM products that are sold over the counter. Diagnostic kits are a relatively new initiative, though they fit in with the general OTC orientation of the company. So far, China Sky One markets a Kidney Disease Kit and Early Pregnancy Kit in addition to the AMI Kit. A prostate cancer kit and female sterility kit are both close to SFDA approval, according to the company.
In December of 2009, China Sky One signed up Guangdong Mediacy Kind Medical Devices Industry Service Company to be its exclusive sales agent in Southeast Asia for two of the company’s diagnostic kits, the AMI Diagnostic Kit and the Kidney Disease Kit.